During my PhD journey, I discovered Barbara Pocock’s work. Her research involved meticulous data analysis of the work-life situation for many Australian families, resonating deeply – describing a difficult situation now exacerbated by the COVID-19 pandemic.
“Around 70% of working women in Australia are experiencing chronic time stress, described as a ‘work-life bomb.'” – Pocock, 2012.
Costs of Uncertainty – Before COVID-19
The financial impact of uncertainty is high due to the actual costs of stress and poor performance. Estimating the cost of stress to society is challenging, but global estimates range from $221 million to $1.87 trillion. These figures highlight the extensive nature of the issue before the pandemic.
When the costs to businesses of stress-related absenteeism, presenteeism, and lack of engagement were estimated, the numbers are so large that their meaning is almost difficult to grasp:
- US absenteeism: $225.8 billion annually (Centre for Disease Control and Prevention).
- US presenteeism: 57.5 days a year per employee of nonproductive work (Virgin Pulse).
- Australian presenteeism: $34 billion a year (Centre for International Economics).
It is argued that 40% of Australian workplaces are underperforming and don’t meet their profitability or ROI targets, contributing to the $34 billion estimate for presenteeism (Gahan et al., 2016).
These figures do not account for the hidden costs associated with attention deficit, resulting from emotional strain in organizations. Attention deficit is deemed so significant that managing the attention economy is now being touted as “the single most important determinant of business success” (Davenport & Beck, 2013). Whatever the total number may be, the financial costs of uncertainty are substantial.
Costs of Uncertainty – the Mental Health Crisis
Declining mental health is evidence of the trajectory of these issues post-COVID, with the most vulnerable being the most impacted. Serving on the Board of the World Federation for Mental Health allows me to see the substantial challenge ahead. I am motivated by the statistics that show our children need our help.
During the COVID-19 pandemic, the prevalence of mental health disorders in children, including anxiety and depression, increased by approximately 25% globally (Nguyen et al., 2024). Another study determined that adolescents experienced a significant decline in their psychological well-being, with a 20% increase in symptoms of anxiety and depression due to prolonged social isolation and confinement during the pandemic (Shukri et al., 2024). The wake-up call for us all is underlined in the risk of suicide among children and adolescents, which has increased by 15% post-pandemic compared to pre-pandemic levels (Maciá-Casas et al., 2024).
Moving Forward: Addressing the Challenges of Work-Life Balance
The business of business is no longer just business (Reeves & Harness, 2017). As political and economic issues become more crucial to the success of enterprises, the impact of complexity and uncertainty becomes predominantly emotional and negative. Leaders can be affected physically and mentally, resulting in stress, bad moods, tiredness, sadness, fear, and insecurity. Consequently, performance at work suffers, and the costs of poor wellbeing are devastating (Roche, Haar, & Luthans, 2014).
This forms a reinforcing loop: poor work performance stems from the negative emotions resulting from stress, while negative emotions are associated with low performance for both individuals and organizations. Addressing the impact of uncertainty on our societies, organizations, and leaders is paramount to mitigating these costs (Fredrickson, 2001).
Leaders are powerfully positioned to play a role in mitigating the rising global crisis of mental ill health to support the wellbeing of our workforce and future generations. The side effect will be a positive impact on the alarming decline in workplace productivity.
References
Davenport, T. H., & Beck, J. C. (2013). The attention economy: Understanding the new currency of business. Boston, Massachusetts: Harvard Business Press: 3.
Fredrickson, B. L. (2001). The Role of Positive Emotions in Positive Psychology. American Psychologist, 56(3), 218.
Gahan, P., Adamovic, M., Bevitt, A., Harley, B., Healy, J., Olsen, J.E., & Theilacker, M. (2016). Leadership at work: Do Australian leaders have what it takes? Melbourne: Centre for Workplace Leadership, University of Melbourne. Available at: workplaceleadership.com.au/sal
Hassard, J., Teoh, K. R., Visockaite, G., Dewe, P., & Cox, T. (2017). The cost of work-related stress to society: A systematic review. Journal of Occupational Health Psychology.
Maciá-Casas, A., de la Iglesia-Larrad, J., & García-Ullán, L. (2024). Post-pandemic evolution of suicide risk in children and adolescents attending a general hospital accident and emergency department. Healthcare.
Nguyen, C. T. P., Beyers, W., & Valcke, M. (2024). Care competencies training enhances adolescents’ well-being: A randomized controlled trial. Psychosocial Intervention
Reeves, M., & Harness, J. (2017). The business of business is no longer just business. BCG Henderson Institute. Blog, https://bcghendersoninstitute.com/ June 21.
Private, M. (2008). The cost of workplace stress in Australia. Sydney, Australia: Medibank Private.
Roche, M., Haar, J. M., & Luthans, F. (2014). The role of mindfulness and psychological capital on the well-being of leaders. Journal of Occupational Health Psychology, 19(4), 476.
Shukri, F. A. A., Hamdan, H., Rahin, N. F., & Abd Aziz, N. S. (2024). Investigating the impact of COVID-19 pandemic on school student’s motivation and psychological well-being: A descriptive analysis. Creative Education
Keyes, C. L. M. (2002). The mental health continuum: From languishing to flourishing in life. Journal of Health and Social Behaviour, 43(2), 207-222.